Report: China Retracted Commitment to End US IP Theft, Forced Technology Transfers

Credit: ShutterstockCredit: ShutterstockBefore U.S. President Donald Trump announced new 25% tariffs on virtually all goods imported from China on Sunday, the Chinese government was planning to backtrack on all of its previously made commitments to the U.S. government, according to a Reuters report today.

China First to Backtrack On Previous Trade Commitments

According to U.S. government and private sector sources, China was already planning on backtracking on some important commitments it had previously made to the U.S. government before arriving for the new trade negotiations with the U.S. government. The diplomatic cable from China arrived in the U.S. on Friday with many edits to the 150-page draft trade agreement that would have eliminated all the trade progress the two countries made since last year.

China had previously committed to ending U.S. IP theft, as well as ending the practice of forcing technology transfers on U.S. companies that want to do business in China via mandatory 50-50 joint ventures or through other means.

China Would Continue IP Theft, Forced Tech Transfers

According to Reuters’ sources, China has made reversals to its previous commitments in each of the seven chapters of the trade agreement, and it seems it's no longer willing to resolve the complaints over which the U.S. government started the trade war in the first place.

These complaints include: preventing intellectual property and trade secrets theft, ending of forced technology transfer for U.S. companies that want to do business in China, improvements to competition policy, access to financial services and an ending to currency manipulation.

President Trump tweeted on Sunday that he would raise the tariffs on $200 billion worth of goods (including electronics) to 25% from the current 10% and may add the 25% tariffs to an additional $325 billion worth of goods.

All of this, plus the already existing 25% tariff on another $50 billion worth of goods means that almost all of the $540 billion worth of goods being imported from China will have a 25% tariff imposed on them, as soon as this Friday, when the new tariffs will go into effect.

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  • JamesSneed
    The US needs to get the IP theft under control but at the same time these tariffs which are paid by the importers and passed on to American consumers are not going help. If we are going to place tariffs on items we should have a plan to move production of those items back to the US otherwise China knows it's a bluff.
  • thegriff
    Quote:
    The US needs to get the IP theft under control but at the same time these tariffs which are paid by the importers and passed on to American consumers are not going help. If we are going to place tariffs on items we should have a plan to move production of those items back to the US otherwise China knows it's a bluff.

    But, the only option becomes Tariffs, the theft of IP and forced joint ventures (same as theft) are intolerable. They have had tariffs on our goods for years, same with Japan and Europe and then they complain when we do the same thing.
  • alextheblue
    Quote:
    But, the only option becomes Tariffs, the theft of IP and forced joint ventures (same as theft) are intolerable. They have had tariffs on our goods for years, same with Japan and Europe and then they complain when we do the same thing.

    Exactly. They tax the hell out of American goods whenever a domestic competitor (copycat using stolen tech, mostly) exists. All we've seen in the past decade or so is LIP SERVICE. They'd wring their hands and then do nothing, as politicians and short-sighted executives alike were too busy lining their own pockets. China has almost single-handedly driven domestic production to a shadow of its former self, and they have practically written the book on dumping. Tariffs are far from ideal, but we're short on leverage and we should have done something DECADES ago. We waited too long and now a lot of the tools we have are all but useless. Even now they spit in our face and backpedal on their commitments to stop IP theft and blatant forced technology transfer. That doesn't even count all the backdoors and spying efforts. People need to open their eyes and look at China's meteoric rise over the past few decades. That has come largely at our expense, and yes they used our own greed and lack of foresight against us. They are playing the long game, they always have. But we can't change the past. We're either suffer now or we'll suffer tenfold later. They'll overtake us in terms of economic power, better to do something now than to wait until we are weaker and have even less industry.